Vancouver-based Aurizon Mines (ARZ-T) has privately placed 3.7 million flow-through shares at $1.35 apiece to raise nearly $5 million to help fund an ongoing underground exploration program at the Casa Berardi gold project, 100 km north of Rouyn-Noranda, Que.
Aurizon has also issued to Dundee Securities 222,000 broker warrants at the same price. The warrants are good for one year.
The underground program includes:
- deepening and extending the ramp at the West Mine area to the 550-metre level from the current 450-metre level.
- drifting about 450 metres east to access the 113 zone on the 550-metre level.
- drifting along the ore in the 113 zone to allow for definition drilling and the extraction of a bulk sample.
To facilitate the ramp extension, Aurizon drove a cross cut for 12 metres along the east-west strike of the Lower Inter zone’s mineralized vein to access the ventilation raise. Aurizon expects the ramp from the West mine area to reach the 113 zone in the fourth quarter.
Reserves in the 113 zone have been calculated at 4.1 million tonnes grading 7.4 grams gold per tonne. Overall resources in the West Mine area amount to 6.9 million tonnes grading 6.7 grams.
Chip sampling in an area drilled and blasted to advance development at the 430-metre level in the Lower Inter zone (a few hundred metres west of zone 113) returned 28.4 grams gold per tonne over 3.8 metres. A previous hole sunk a metre to the east of the area yielded 22.9 grams over the same length.
Chip samples from across the face of a second nearby area returned 24.6 grams gold, also over 3.8 metres; a previous hole collared 6 metres to the east averaged 9.6 grams over 6 metres.
A crosscut to access the ventilation raise at the 450-metre level is underway.
The Lower Inter zone’s reserves were previously pegged at 1.75 million tonnes running 6.1 grams gold.
Aurizon previously completed repairs to the former producer’s compressed air and ventilation systems, electrical supply, and emergency exit.
The work done to date is part of a 19-month program; $11 million has budgeted for work during 2003.
The plan at Casa Berardi also calls for 20,000 metres worth of drilling on the 118-120 zones, about 300-500 metres east of the West mine’s known reserves, downdip of the Principal zone (500-1,000 metres below surface). The $2 million program will also include step-out drilling between those zones and the East Mine.
Earlier this year, Aurizon reported that five of eight holes on the 118-120 zones returned up to 35.4 grams gold over 6.2 metres, including a 1.9-metre section running 105 grams gold.
The exploration program at Casa Berardi is aimed at expanding resources and reserves with an eye toward boosting the projected mine life beyond 7.5 years.
Results from the final holes of the first phase of exploration have been sent for assaying; a new resource estimate is expected during the current quarter. A second round of underground drilling is slated for early June.
Shares in Aurizon were trading 8 or 6.7% higher at $1.28 in mid-afternoon trade in Toronto on May 12.
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